India: SAIL’s pig iron sales from auctions up 24% m-o-m in May’21

Indian government-owned steel major Steel Authority of India (SAIL) registered a 24% month-on-month (m-o-m) increase in pig iron sales in May’21 from its periodic auctions from all its steel plants. The total sales from auctions stood at 78,700 tonnes (t) last month.

After falling below the 60,000 t-mark in Jan’21, pig iron sales from auctions bounced back in Feb’21 and Mar’21, touching 84,850 t and 82,050 t respectively but the same in Apr’21 dropped to 63,350 t. In May’21, the sales volumes from auctions again picked up on optimistic steel market outlook as the number of Covid-19 cases are reducing gradually and many states have started easing lockdown restrictions.

BSP allocates highest pig iron volumes

SAIL’s Chhattisgarh-based subsidiary, Bhilai Steel Plant (BSP), recorded the highest sales volume of 33,700 t of pig iron from auctions in May’21. Bokaro Steel Plant (BSL), Jharkhand and Rourkela Steel Plant (RSP), Odisha, allocated 17,100 t and 16,700 t respectively in last month’s auctions.

Bids drop significantly m-o-m

Bids in SAIL’s pig iron auctions dropped significantly last month following a decline in billet prices in India amidst full or partial lockdown in majority of states. After increasing to INR 44,100/t exw-Raipur on 13 May’21, SteelMint’s billet index fell to a 1.5-month low of INR 40,200/t exw on 27 May’21 due to dull domestic demand. However, prices will likely rebound going forward as demand for billets is recovering with easing of restrictions in many states.

The weighted average pig iron prices at Bhilai Steel Plant’s auctions in May’21 are assessed at INR 38,850/t, down by INR 450/t m-o-m as compared to INR 39,300/t in Apr’21.

Similarly, the same at RSP auctions dropped marginally by INR 50/t to INR 38,200/t in May’21 as compared to INR 38,250/t in Apr’21. Bokaro Steel Plant’s weighted average pig iron price moved up to INR 37,300/t compared to INR 37,150/t in the previous month.

Pig iron prices at SAIL’s Burnpur and Durgapur units stood at INR 37,575/t and INR 37,700/t respectively in May’21, a decrease of around INR 450/t m-o-m for both prices.